contractual terms - The Legal Chamber

This Supreme Court judgment clarifies that an arbitral award granting a composite interest rate from the cause of action until the date of repayment, based on a contract between the parties, excludes the default application of separate post-award interest under Section 31(7)(b) of the Arbitration and Conciliation Act, 1996. Party autonomy governs, and a decree-holder cannot claim compound interest at the execution stage if it was not stipulated in the contract or awarded by the tribunal, as this would amount to impermissibly modifying the award. Facts Of The Case: The dispute originated from a Memorandum of Understanding (MoU) dated 09.04.2014 between HLV Limited and PBSAMP Projects Pvt. Ltd. for the sale of land in Hyderabad. PBSAMP paid an advance of Rs. 15.5 crores to HLV. After...

The Supreme Court held that tariff fixation for port facilities is a technical and expert-driven function, best adjudicated by specialized bodies like TAMP. It emphasized that contractual agreements cannot override statutory tariff-setting mechanisms under the Major Port Authorities Act, 2021. The Court remanded the matter to TAMP for fresh determination, underscoring the need for expert appraisal of tariff revisions and compliance with natural justice. Facts Of The Case: A bilateral agreement was executed in 1985 between Paradip Port Trust (now Authority) and Paradeep Phosphates Ltd. (PPL), then a public sector unit, for the exclusive use of a captive fertilizer berth. The agreement stipulated a tariff schedule, with a clause for future mutual enhancement. In 1993, the Port unilaterally...

Tag: contractual terms

Clarity on Post-Award Interest: Supreme Court Explains When Hyder Consulting Judgment Applies

Supreme Court Ruling: Port Tariffs Must Be Set By Experts, Not Arbitrators